The Argument for Regulation

In this post and the next I plan to make the arguments for and against regulation of virtual worlds. The argument for regulation is the easiest and the least compelling so I will address it first. The argument for regulation of virtual worlds is basically the same as the argument for regulation in any sphere. People need a predictable environment in which to conduct their businesses and social affairs. Without some sort of regulatory structure short term gains by opportunists will lead to long term losses in the system as a whole. This is not to say that there is anything inherently wrong with short term opportunists. In fact, there is much to be said in favor of them. Them make the system more efficient. But the line between efficient and predatory is often very finely drawn. And a predatory environment cannot flourish over the long term.

To put this into more pragmatic terms, if I cannot trust an environment in which I am operating, I am unlikely to take risks in that environment. If the environment needs people to take risks in order for the environment to flourish, then the people must be able to trust the environment and the environment much meet the expectations of those risk takers.

To put this into even more concrete terms, if I do not trust a virtual world environment I will be unlikely to start a business, sell a product, offer a service, teach a class, hold a meeting, or any of the other activities that the virtual world needs me to do in order to reach its full potential. So, regulation is necessary if a virtual world is going to become a place of commerce, education or socializing.

In the early days of web technologies, people were reluctant to buy products that they could not touch and even more reluctant to give their credit card number to some unknown entity in cyberspace. Companies like Amazon.com offered excellent return policies and promised to protect their customers private information, such as credit card numbers. This was a form of self regulation and, in the case of the web, it was all the regulation that was necessary.

I don't think that this would be enough regulation for a virtual world. On a web site, you don't have people from some other web sites coming to where you are and harassing you. And if you find yourself on some undesirable website, you can merely close your browser. You don't have to worry about leaving your avatar there until you log in again. So, virtual worlds present difficulties that do not exist on web sites.

I would view a virtual world more like a shopping mall, maybe even a town. Even though the individuals in that mall or town may be behaving within the boundaries placed on them as individuals, a few more restrictions are probably necessary so that everyone can get along and prosper. So virtual worlds will require some level of regulation to thrive and the question is - how much? Too much regulation has its down sides as well. And we will get to that next.